Your clients, Dinah and Oliver Arrow are in the business of renovating homes and reselling them. They are considering purchasing a small yacht that they can use on the Columbia River and other local waterways near Vancouver, Washington where they work and live. They hope they can use the yacht to both travel to and from locations where they are renovating, carrying materials, and to use as advertising for their company. They may spend the night on the yacht from time to time if held over at a client site. The local lake and riverfront are very active, so the couple feels they would be very visible. The yacht will be docked a few miles from their home adjacent to a lot where they store construction materials. For most client sites it is over $100$ miles by road but usually within $40$ miles by river. They want to deduct the yacht as a business expense as they will use it for: $$ Transportation of construction materials to the building sites $$ Mobile office while working on construction $$ Temporary housing while at client sites $($instead of hotels or commuting back home$).$ Advertising by having signage on the sides of the boat and$/$or a flag with their company logo on it$.$ Meetings with customers while at various construction sites. $$ Social gatherings or other forms of entertainment while trying to gain new business. This is an idea in process and they are being very good clients by asking your advice BEFORE they make a decision, rather than after. Think this through carefully so you can offer them good advice! Find two IRC Sections that relate to this topic. Find two Treasury Regulations that relate to this topic. Find two court cases that relate to this topic.